Burford creates capital facilities for companies and law firms by financing multiple matters in a single portfolio.
What we do
Portfolio finance gathers multiple matters in a single funding vehicle. Capital can be used to fund legal costs associated with the underlying matters or for operating capital for the firm or company. Capital is typically provided on a non-recourse basis, meaning that Burford assumes downside risk and earns its investment back and a return only in the event of the successful resolution of the disputes. The matters within the portfolio can be a mix of claims and defense matters, and cross-collateralization generally lowers the cost of capital.
Portfolio-based capital facilities equip companies to fund high-value recovery programs and give firms a robust tool to develop business areas and pitch and win new business.
Monetization portfolio
Monetization portfolios provide substantial upfront capital that can be used either for legal fees and expenses or for other operating purposes, collateralized by substantial existing books of litigation at a variety of stages in the litigation process, with additional cases of varying sizes and profiles. Monetization portfolios are built around “anchor cases” that are large or close to maturation.
Risk-share portfolio
Risk-share portfolios are suited to companies that wish to pursue additional recoveries without exceeding their optimal risk profiles, or to law firms that want to invest in new business or expand their portfolios of at-risk matters. Risk-share portfolios typically consist of at least four or five large cases which can either be all identified at the outset or added on a going-forward basis, with capital being used to pay a portion of fees or expenses as they are incurred.
Expenses-only portfolio
Expenses-only portfolios address the financial burden that paying case expenses out of pocket can place on law firms that take on high-stakes commercial litigation on a contingency basis. Although many firms are willing to risk their fees, they may want to hedge out-of-pocket expenses, which can account for 25% of case costs and do not generate ROI. Portfolio finance alleviates the burden of expenses increasing dramatically over the duration of the case, helping companies and law firms manage risk and cash flow.
How we help
- Create significant capital facilities
- Provide more flexible and lower-cost capital than single-case finance
- Fund recovery programs
- Equip firms to pitch and win new business
